Finding 1145470 (2024-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-06-30
Audit: 360675
Organization: Arenac County (MI)
Auditor: Yeo & Yeo PC

AI Summary

  • Core Issue: The County's federal policies and procedures are not updated to meet Uniform Guidance requirements.
  • Impacted Requirements: Key areas include financial management, allowable costs, procurement, and reporting standards.
  • Recommended Follow-Up: The County should develop and adopt comprehensive written policies to ensure compliance with Uniform Guidance.

Finding Text

Specific Requirement: Written procedures specific to federal awards are required to comply with Uniform Guidance, including written procedures for financial management systems, payments, allowable costs, period of performance, matching or cost sharing, program income, procurement, equipment and real property, supplies, copyrights, subawards or debarred and suspended parties, monitoring and reporting program performance, financial reporting, retention and access requirements for records, cash management, and payroll or federal timekeeping. Condition: The County did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Cause: The County has not historically received a significant amount of federal funding, therefore they have not implemented written policies and procedures specific to Uniform Guidance. Effect: The lack of written federal policies and procedures that are in compliance with Uniform Guidance increases the risk of noncompliance within federal programs. Recommendation: We recommend that the County develop and adopt written policies and procedures that are in compliance with Uniform Guidance. Views of responsible officials: Management is in agreement with the finding. Corrective action plan: See attached.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Equipment & Real Property Management Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Cash Management Period of Performance Reporting

Other Findings in this Audit

  • 569028 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.923 Emergency Watershed Protection Program $5.37M
93.563 Child Support Services $54,747
97.067 Homeland Security Grant Program $17,575
14.239 Home Investment Partnerships Program $7,621
14.218 Community Development Block Grants/entitlement Grants $5,425
21.027 Coronavirus State and Local Fiscal Recovery Funds $3,768
93.658 Foster Care Title IV-E $3,382
10.433 Rural Housing Preservation Grants $546